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ITG Shares Its Perspectives On Flash Trades With Zero Hedge

Tyler Durden's picture





 

Zero Hedge recently discussed Implementation Shortfall (slippage) costs courtesy of empirical data made available by ITG. We are happy to share with our readers some of ITG's perspectives on the topic of Flash orders and Dark Pools.

Mr. Durden:

I am among the many readers of Zero Hedge here at ITG (we don’t block access to financial blogs of any stripe).  I read with interest your post on “The Cost of High Frequency Trading” (08/02/2009, 11:36). 

While we are happy to see that you find our research on Implementation Shortfall to be useful, we just wanted to clarify a couple of things:

1. The ban on most 3rd party algorithms in POSIT is not new – the quote from our CEO you cite is from December 2007. 

2.  Regarding high frequency trading – the vast majority of our clients are institutional investors.  We do very little business with high frequency traders as they are not our core customer base.  We have developed proprietary anti-gaming software and liquidity filters to prevent our clients’ orders from interacting with toxic liquidity. We also do not interact with flash orders in any venue.

Best regards,

 

Carolyn

Corporate Communications

Investment Technology Group

 

 


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Tue, 08/04/2009 - 15:23 | Link to Comment Pizza Delivery Man
Pizza Delivery Man's picture

http://trading-stock-market.blogspot.com/2009/06/stock-market-crash-1929.html

Would you look at that beautiful rally. Kind of eery the similarities up to this point. There is even a head and shoulders pattern in there that ended up failing.

Tue, 08/04/2009 - 15:35 | Link to Comment Anonymous
Tue, 08/04/2009 - 15:36 | Link to Comment Anonymous
Tue, 08/04/2009 - 15:44 | Link to Comment Anonymous
Tue, 08/04/2009 - 15:45 | Link to Comment Anonymous
Tue, 08/04/2009 - 15:47 | Link to Comment Anonymous
Tue, 08/04/2009 - 15:57 | Link to Comment Anonymous
Tue, 08/04/2009 - 16:03 | Link to Comment Anonymous
Tue, 08/04/2009 - 16:30 | Link to Comment Anonymous
Tue, 08/04/2009 - 17:18 | Link to Comment Anonymous
Tue, 08/04/2009 - 17:30 | Link to Comment Anonymous
Tue, 08/04/2009 - 16:31 | Link to Comment Anonymous
Tue, 08/04/2009 - 19:00 | Link to Comment Deferred Comp
Deferred Comp's picture

 

Ok. Now we are getting somewhere.  Let's expand on that topic of "toxic liquidity" and the need for "anti-gaming" software.

The can of worms is officially ripped wide open .  

Nice !

Wed, 08/05/2009 - 08:44 | Link to Comment Deferred Comp
Deferred Comp's picture

TD when are you going to tackle Indications of Interest ?  I'm not sure ITG will be deserving all the mad props being heaped on them.

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